Central Bank Digital Currency
By Manashaa G
TECH
CBDC
Uses a blockchain-based token to represent the country's official digital currency
NOT LIKE BITCOIN
Unlike Bitcoin, which is a privately owned entity, a CBDC unit would be centralized by a country’s monetary authority
Since CBDC will act as a mouthpiece of a country's digital currency, it will be aided by monetary reserves such as gold or foreign currency reserves
Each CBDC unit can be used for payments just like cash and coins
Every single CBDC unit will have an unique serial number to avoid imitations
To avoid scams, hacks and thefts of data. It is more convenient and secure
Why CBDC?
If introduced in India, the CBDC unit will be monitored by our Central Bank, the “Reserve Bank of India
CBDC aims at establishing a convenient and secure digital form of payments such as cryptocurrencies, and the money must be regulated
Bank of England (BoE), People’s Bank of China (PBoC), Bank of Canada (BoC) and banks of Venezuela, Thailand, Sweden and Singapore among other digital form of payments like cryptocurrencies, and the money must be regulated
Russia is currently working on its own CBDC instrument creation called “cyrpto-ruble”
No country has launched their own official CBDC unit so far